After the assurance of Obama the dollar is nearing one week high
After the statement made by Mr. Obama (President of America) that the American currency is holding strong as the investors believe in their economy, the trading of the dollar neared the maximum level versus euro. After a report from the government of Japan showed that that country has shown the reducing demand for the goods the yen might fall for the fourth day against the greenback.
There are probabilities that the euro might decline for the fifth day versus the pound. Since January 9th this can be the biggest losing stretch. According to Mr. Muramatsu who is the manager of Group Treasury Asia in Tokyo at Commerzbank AG (Germany’s second biggest lender) the dollar is slowly improving and people are again start believing in American economy. It is because of the aggressive policies that now America which was the first victim of recession is seeing a light of hope of recovering themselves.
In Tokyo the American currency did a trading at $1.3481 per euro in the afternoon from $1.3466. The greenback was still untouched at 97.79 yen from 97.85 yen and the euro was at 91.84 British pence from 91.71 pence. Yesterday the yen did a trading at 131.79 from 131.80, the currency of Japan also declined to 68.17 as compared to the dollar of Australia from 68.06, and got weaker to 79.53 versus dollar of Canada from 79.41.
On the second day the Dollar Index also increased with the American President made a comment that his attempts renewing the economy has begun to take hold and the budge of 2010 will lay the stone for the growth and development. In a press conference at White House in Washington, Mr. Obama said that there is no need for the international currency. The Dollar Index of ICE which is also responsible for tracking greenback versus the euro, pound, yen, Swedish krona, Swiss franc, and Canadian dollar increased 0.2% at 84.059 after getting to 82.62 on March 19th. It is considered to be the minimum level since the early January.
After the report of Finance Ministry showed that the due to the recession the demand has weakened for the electronic products and cars, the currency of Japan might get weakened. In the month of February the exports declined 49.3% and this is considered to be the highest drop since the year 1980 at the time the government started keeping the comparable data.
The Nikkei 225 Stock Average declined 0.1% and MSCI Asia-Pacific Index of local shares increased 0.1%. Seeing the chances of recession in Europe are getting serious, the demand for euro might decline. According to a survey from the economists the Ifo institute’s German trade index declined to 82.1 in the month of March from 82.5 in February. Since the month of November 1982 this would be the minimal level and Ifo will be disclose their report in Munich at 10 a.m.
Tags: currency exchange, dollar rate, forex, obama